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Democrats control the House, but Republicans hold the Senate and the White House. The plan proposed by Schumer and Sanders will probably not pbad through the GOP-controlled Senate or Trump's support. The McConnell office did not have an immediate response to the proposal.
Kevin Hbadett, chairman of the board of Trump's economic advisors, told CNBC Monday that he hoped that an "economist would see these guys on the operation of buyouts."
Despite legislative obstacles to the plan, Democrats will use it to try to gain an advantage in the battle of the 2020 messages. The party hopes to retain its majority in the House, defeat Trump and win a majority in the Senate in the elections. next year. Trump, whose approval ratings are mediocre, has at least one factor that supports his candidacy for reelection: a solid economy.
With their redemption plan, Democrats focus on Trump's main economic outcome: the law that lowered corporate tax rates and reduced them for most individuals. The tax plan lowered the corporate tax rate from 35% to 21%. Republicans who crafted the legislation argued that this would boost capital investment, worker productivity, wages, and economic growth. Trump called this a "miracle of the middle clbad".
Democrats have presented this plan as a gift for businesses and wealthy Americans. They invoked a constant share buyback of a record $ 1,100 billion in 2018, mechanisms that have boosted share prices in part through corporate tax savings.
Schumer and Sanders say that stock repurchases have not helped the workers. They wrote on Sunday: "First, share buybacks do not benefit the vast majority of Americans.This is because large shareholders tend to be richer.More than 85% of the shares held by Americans belong to the 10% of the richest households. "
Trump has often touted the economy as his greatest achievement in power. He will probably do so again Tuesday during his State of the Union address.
The stories of dueling will figure prominently in the 2020 elections, especially because the tax law has given the Democrats something to criticize in an otherwise strong economy. The Democrats have "the strongest case at this stage" in saying the plan had led to more buyouts and strengthened the rich, said Bill Galston, senior researcher in governance studies at the Brookings Institution .
Attacks on the tax plan and share buybacks will fit into the wider Democrats' claim that they will do a better job of researching working-clbad Americans than Trump has committed to defend as a candidate.
"Both sides will try to argue that they are the real advocates of working clbad Americans and the middle clbad," he said. "And there is no doubt that Democratic leaders, including the presidential candidate, will argue that the Trump administration began by claiming the cloak of populism and eventually obeying the plutocrats."
The share buyback proposal also reflects a shift in the center of gravity of the Democratic Party. The 2008 financial crisis and the feeling that the rich who are responsible for avoiding sanctions are encouraging a more populist bias in the two main political parties.
This change has helped propel Sanders, head of banks and large corporations, to a surprisingly strong performance in the 2016 Democratic presidential primary. He could run for a primary Democrat of 2020 dominated early. through discussions on whether and how to tax the rich more.
Galston expects Trump's future Democratic opponent to champion policies designed to stimulate the working clbad and reduce business.
"I would be very surprised that the Democratic presidential candidate, whether he is from the left or the center, does not advocate for the transition to a $ 15 minimum wage and other issues that have become a bit of ground, "he said.
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